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Charitable Giving: Baby Boomers Donate More, Study Shows

Charities looking to bolster their fundraising efforts should focus their attention on the Baby Boomers, from whom the bulk of money will come for at least the next decade.

That's one of the most important implications of a study released today that compares the giving habits of Boomers (aged 49 to 67) with so-called "Matures" (who are 68 or older), Gen X (33 to 48) and Gen Y (18 to 32). The survey, commissioned by Blackbaud, which provides software to nonprofits, found that not only are Boomers the largest group numerically, with 51 million individuals comprising 34% of the donor base, they are also the largest contributors, giving an estimated total of $61.9 billion per year (43% of all the dollars donated). Matures accounted for 26% of the donations; Gen X, 20%; and Gen Y 11%.

The study involved an online survey in May of 1,014 U.S. donors 18 or older who had made a monetary donation to at least one non-profit organization or charitable cause within the last 12 months (excluding a trade union, children’s school, alma mater, or place of worship).

Social service charities, houses of worship and health organizations are supported by the largest percentage of donors across all generations, but for other causes there were differences between the generations. For example, Gen X and Gen Y are more likely to support children’s charities, human rights and international causes, while Boomers and Matures are more likely to support veterans’ causes. Most donors across all age groups do not plan to expand their giving in the coming year. If forced to cut their overall charitable giving by half, participants said giving to health-related causes would become a lower priority.

The study also revealed that multichannel engagement is the new normal, but that the ideal mix varies from generation to generation. The majority of donors don't mind being approached by friends (or friends’ kids) to support a charity. Boomers increasingly give online (as opposed to by mail) — something that hasn't caught on with the generation older than them. Younger donors are less responsive to telephone solicitation, and more likely to give through the workplace (in contrast to Boomers who are being forced out of corporate jobs). They also like cause-related marketing – where a portion of the purchase price goes to a cause or charity.

For all the hype about social media, giving through Facebook, Twitter and other social networks is low and relatively unchanged since 2010. Fundraisers can give their thumbs a rest, too; giving by text "appears to be going nowhere," the study concludes. However, "a relative newcomer to the fundraising scene, community fundraising projects (via platforms like Kickstarter and Indiegogo) are already gaining traction, especially with younger donors."

Not surprisingly, the gloomy job market and downward economic mobility for Gen Y is already exerting its influence on charitable giving. It "will cast an even greater shadow over philanthropic habits in years to come," the study concludes.

Based on these findings the report on the study, written by charitable consultants Sea Change Strategies, offers some practical advice to charities. The most obvious is to focus on Boomers. "Matures are slowly passing from the scene but will still be a presence in 2023," the authors write. Event planners take note: "Approximately, one-fifth of donors, without generational variation, say they attend or host in-person events for a cause or charity."

The authors recommend that charities "prepare for the future today," by attracting younger supporters through peer-to-peer fundraising and crowdsourcing. But nonprofits need to recognize that the full payback may be many years off.

I'm a financial journalist and author with experience as a lawyer, speaker and entrepreneur. As a senior editor at Forbes, I have covered the broad range of topics that…

I'm a financial journalist and author with experience as a lawyer, speaker and entrepreneur. As a senior editor at Forbes, I have covered the broad range of topics that affect boomers as they approach retirement age. That means everything from financial strategies and investment scams to working and living better as we get older. My most recent book is Estate Planning Smarts -- a guide for baby boomers and their parents. If you have story ideas or tips, please e-mail me at: deborah [at] estateplanningsmarts [dot] com. You can also follow me on Twitter